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An accrued expense such as accrued wages can best be described as an amount?
not paid and currently matched with earnings.
What requires that expenses will be matched with revenues to determine net income?
Matching
How do you do the accounting for accrual director fees?
To account for accrual director fees, first, determine the amount owed for services rendered by directors within the accounting period, regardless of when the payment is made. Record the accrued fees as a liability in the balance sheet under "Accrued Liabilities" and simultaneously recognize the expense in the income statement. When the payment is eventually made, debit the accrued liabilities account and credit cash or bank. This ensures that expenses are matched to the period in which they were incurred, adhering to the accrual basis of accounting.
Why should cost be matched with revenues at the end of an accounting period?
You compare income with expenses to see how much profit you have made.
What is required by matching principles?
Matching principles requires that expenses of one fiscal year is matched by revenue of the same fiscal year.
How accrual basis of accounting is related to matching concept?
Accrual basis accounting system is based on the concept of matching principle which dictates that revenues of same fiscal year should be matched with expenses of same fiscal year.
A nazard true or false-accrual convention is when the revenue earned for a particular period is added to the expenses involved in making the revenue in that period-accounting?
It is false. The right answer is ,the revenue is matched with expenses involved in making the revenues in that period.\the difference will produce a profit or loss.
Is an asset a cost that will be matched with revenues in a future accounting period?
Some assets will become costs in a future period such as Inventory and Prepaid Expenses. Fixed Assets will be depreciated in future periods. However, assets such as Cash and Accounts Receivable do not represent future expenses.
Accrual Basis of Accounting?
The accrual system of accounting is a system that measures the performance and position of a company by recognizing when the events happen and not when the cash was received. In this system, revenues are matched to their expenses.
Why depreciation is considered as non-cash item and comes under the heading of operating expenses in Income Statement?
Depreciation is a way to match expenses for an assets that was purchased in a different accounting cycle. As the assets produces income, the expenses of the asset is then matched in following accounting cycles. It is considered an operating expense, since the matching assets is used for business operations.
What might be matched to an weapon?
What might be matched to a weapon
What is the opposite of matched?
The opposite of matched (matched up) would be unpaired. The opposite of matched (alike) would be unlike, different, disparate, or dissimilar.
